(Answered) Greentrees corporation currently has 60 million in

Engineering

GreenTrees Corporation currently has $60 million in liabilities and common equity in combination. There are no preferred stock. The CFO constructed the following table to show the effect of changing the firm's capital structure:

Amount of Debt in the Capital Structure ($)	Earnings per Share(EPS) ($)	Market Price per Share (Po) ($)
20,000,000	5.0	125.5
30,000,000	5.5	130.75
40,000,000	5.7	130

Using this information, what is GreenTrees optimal capital structure? Explain your answer

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